Nomura Securities maintains 'Buy' on JGC Corporation (1963), lifts price target
JGC Corporation shares rose after Nomura Securities maintained its "Buy" rating and significantly increased its price target for the Japanese engineering firm. On April 29, 2026, the company's stock, trading under symbol 1963, advanced 5.1% to ¥2,458. This move follows yesterday's close at ¥2,339.
Nomura Securities raised its price target for JGC Corporation to ¥2,800, up from its previous ¥2,200. This adjustment aligns with an upward revision of the firm's operating profit forecast for the fiscal year ending March 2027, now projected at ¥35 billion from an earlier ¥32 billion. The revised outlook stems from anticipated growth in orders for multiple large-scale liquefied natural gas projects.
Additional buying pressure on JGC Corporation's stock emerged from expectations of substantial orders related to Middle East reconstruction efforts. The shares also broke through their 2018 high of ¥2,739, signalling an upward reversal in a long-term trend and attracting broader sector interest.
Why JGC's Revised Profit Forecasts Are Lifting Shares
JGC Corporation is an engineering firm specialising in large-scale plant construction, primarily within the energy sector. They design, procure, and build facilities like liquefied natural gas (LNG) plants, oil refineries, and chemical plants for major energy companies and government bodies worldwide. Their revenue is generated by winning and executing these complex, often multi-year, projects.
Today's share price movement stems from Nomura Securities significantly raising its price target for JGC, moving it from ¥2,200 to ¥2,800, while maintaining a "Buy" rating. This upgrade was primarily driven by Nomura's revised operating profit forecast for the fiscal year ending March 2027, which they increased from ¥32 billion to ¥35 billion. This upward adjustment reflects expectations for JGC to secure multiple large LNG-related projects, alongside some anticipation of major Middle East reconstruction orders and a break above a long-term high of ¥2,739 from 2018.
This analyst's increased confidence in JGC's future earnings potential has resonated with investors, pushing the stock higher. As a result, JGC shares are currently trading at ¥2,458, marking a 5.1% increase from yesterday's close of ¥2,339.
Think of it like an expert assessor re-evaluating the future earning potential of a major construction firm. Based on new information about upcoming, highly lucrative projects, this expert now believes the company will make significantly more money than previously thought. When that updated, more optimistic assessment reaches the market, other potential investors see the increased value and become eager to buy into the company.
JGC Corporation
JGC Holdings Corporation (1963) is an industrial firm specialising in engineering and construction. Its operations are divided into two segments: Total Engineering and Functional Materials Manufacturing. The company provides engineering, procurement, and construction services for a diverse range of facilities, including those for petroleum refining, petrochemicals, gas, LNG, and nuclear energy, alongside projects in biotechnology, food, and pharmaceuticals. It also produces and distributes various chemical and catalyst products, such as FCC and hydrotreating catalysts, and functional materials including colloidal silica and semiconductor materials. JGC Holdings serves a global client base spanning Japan, East and Southeast Asia, the Middle East, Africa, and North America. The company was founded in 1928 and is headquartered in Yokohama, Japan.